Tax Planning and Strategy

September 24, 2019

As of today, we are three weeks away from the October 15th tax year 2018 extended filing deadline for individual returns. Most of our clients have already filed their 2018 tax returns, but there are a few that we are working with to meet the extended deadline.

As tax year 2019 heads into the 4th quarter in just a week, it is time to begin scheduling year-end tax planning appointments with our clients. This is my favorite time of year. The tax analysis and planning process allows us to discuss with clients where they are projected to end the year and to explore opportunities to reduce their 2019 tax liability by taking certain actions before year-end. After it is decided what actions will or will not be taken before year-end, we then help them plan to have paid in the remaining tax they will owe so that they are as close to breakeven as possible for the year. We are not fans of large refunds or large balances due. A large refund generally means that you left funds in the hands of the government for a period when you could have had those funds working for you during that time frame. Obviously, owing a large amount with the filing of your tax returns can be financially stressful and can also trigger late payment penalties and interest which are never a great idea.

When preparing tax returns for clients, the most regrettable phrase I utter or hear is “it would have been better if we had . . .” This discussion happens most often with new clients to our firm who made decisions or entered into transactions that negatively affected their tax bottom line. Many times, the client had no idea of the detrimental effect the action would have on their financial and tax situation. We strive to educate our ongoing clients and ask them to contact us to discuss a situation before making a decision that will affect their tax bottom line.

We schedule year-end tax planning appointments beginning October 16th and continue them through November and into December. Whether you are a current client of Weech Financial, PLLC or not, please contact us to schedule an appointment if you are interested in ensuring you are being as efficient as possible related to your tax liability for the year.

By the way, the rain we have just received is great and we are thankful for the cooler temperatures it has brought as well!